S. 626Senate112th Congress (2011-2013)In Committee

American Shipping Reinvestment Act of 2011

Introduced March 17, 2011

Legislative Activity

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2 earlier actions
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S1839-1840)

March 17, 2011

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SenateIntro Referral

Introduced in Senate

March 17, 2011

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S1838-1839)

March 17, 2011

SenateIntro Referral

Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S1839-1840)

March 17, 2011

Floor Debate

16 members

What members said about S. 626 on the floor

6 Republicans10 Democrats
Lisa Murkowski
Sen. Lisa MurkowskiR-AK · Mar 17, 2011

Mr. President, I rise today to introduce legislation that really has been 97 years in the making, legislation to authorize the land conveyances needed to permit the Alaska Railroad to be extended…

Olympia J. Snowe
Sen. Olympia J. SnoweR-ME · Mar 17, 2011

Mr. President, I rise today, along with Senator Warner, to reintroduce legislation that provides greater technical resources to the Commissioners of the Federal Communications Commission. Such…

Dianne Feinstein
Sen. Dianne FeinsteinD-CA · Mar 17, 2011

Mr. President, I rise today to introduce the Earthquake Insurance Affordability Act. This bill makes important changes that will increase availability and reduce cost of catastrophic insurance for…

Herb Kohl
Sen. Herb KohlD-WI · Mar 17, 2011

Mr. President, I rise today with Senator Graham to introduce the Sunshine in Litigation Act of 2011, a bill that will curb the ongoing abuse of secrecy orders in Federal courts. The result of this…

Ron Wyden
Sen. Ron WydenD-OR · Mar 17, 2011

Mr. President. I am honored to join my colleague from Wyoming, Senator John Barrasso, in introducing a bill essential to enhancing the delivery of mental health services to our senior citizens, The…

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Patrick J. Leahy
Sen. Patrick J. LeahyD-VT · Mar 17, 2011

Mr. President, this week, the Nation commemorates Sunshine Week, a time to educate the public about the importance of open government. In recognition of Sunshine Week 2011, I am pleased to join with…

Maria Cantwell
Sen. Maria CantwellD-WA · Mar 17, 2011

Mr. President, I am pleased to join with my colleagues Senators Vitter, Carper, Cochran, Inouye, Landrieu, and Murray to introduce the American Shipping Reinvestment Act of 2011. This legislation…

Maria Cantwell
Sen. Maria CantwellD-WA · Mar 17, 2011

Mr. President, I am pleased to join with my colleagues Senators Vitter, Carper, Cochran, Inouye, Landrieu, and Murray to introduce the American Shipping Reinvestment Act of 2011. This legislation…

Susan M. Collins
Sen. Susan M. CollinsR-ME · Mar 17, 2011

Mr. President, I rise today to introduce with Senator Lieberman the Securing Terrorist Intelligence Act. Last Congress, the Senate Homeland Security and Governmental Affairs Committee heard testimony…

Tom Udall
Sen. Tom UdallD-NM · Mar 17, 2011

Mr. President, who will develop a computer small enough to fit into our eyeglasses? Who will build the first fully-automated, completely sustainable house or hospital? Which country will successfully…

Richard J. Durbin
Sen. Richard J. DurbinD-IL · Mar 17, 2011

Mr. President, on March 22, countries around the world will celebrate World Water Day--a day to mark the progress we have made protecting this most important resource and to reflect on the many…

Daniel K. Akaka
Sen. Daniel K. AkakaD-HI · Mar 17, 2011

Mr. President, I rise today to introduce the Furthering International Nuclear Safety Act of 2011 to enhance the implementation of the Convention on Nuclear Safety by taking a more systematic approach…

Chuck Grassley
Sen. Chuck GrassleyR-IA · Mar 17, 2011

Mr. President, all too often we learn of new and emerging drug threats to our communities that often have a huge negative impact on our youth. When these drug threats emerge it is crucial that we…

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Tom Harkin
Sen. Tom HarkinD-IA · Mar 17, 2011

Mr. President, ensuring that all students, regardless of background or ability, receive an education that gives them the opportunity to live a successful and fulfilling life has always been a major…

Harry Reid
Sen. Harry ReidD-NV · Mar 17, 2011

Mr. President, I rise today to reintroduce the Elko Motocross and Tribal Conveyance Act of 2011. This bill would transfer two small parcels of public land to Elko County and the Elko Indian Colony…

John Barrasso
Sen. John BarrassoR-WY · Mar 17, 2011

Mr. President, I am honored to join my colleague from Oregon, Senator Ron Wyden, to introduce the Seniors Mental Health Access Improvement Act. For over a decade, Senator Wyden has been a strong…

James M. Inhofe
Sen. James M. InhofeR-OK · Mar 17, 2011

Mr. President, I rise today to bring to the Senate's attention H.R. 473. This is the HALE Scouts Act, and the House author is Congressman Dan Boren, D-Okla. I am announcing today introduction of a…

Harry Reid
Sen. Harry ReidD-NV · Jul 30, 2011

Mr. President, following any leader remarks, the Senate will resume consideration of the motion to concur in the House message to accompany S. 626, the legislative vehicle for the debt limit…

Bill Text

Latest available legislative text

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Introduced in SenateIssued March 17, 2011

II

112th CONGRESS

1st Session

S. 626

IN THE SENATE OF THE UNITED STATES

March 17, 2011

Ms. Cantwell (for herself, Mr. Vitter, Mr. Carper, Mr. Cochran, Mr. Inouye, Ms. Landrieu, and Mrs. Murray) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to repeal the shipping investment withdrawal rules in section 955 and to provide an incentive to reinvest foreign shipping earnings in the United States.

1.

Short title

This Act may be cited as the American Shipping Reinvestment Act of 2011.

2.

Repeal of qualified shipping investment withdrawal rules

(a)

In general

Section 955 of the Internal Revenue Code of 1986 (relating to withdrawal of previously excluded subpart F income from qualified investment) is hereby repealed.

(b)

Conforming amendments

(1)

Section 951(a)(1)(A) of the Internal Revenue Code of 1986 is amended by adding and at the end of clause (i) and by striking clause (iii).

(2)

Section 951(a)(1)(A)(ii) of such Code is amended by striking , and at the end and inserting , except that in applying this clause amounts invested in less developed country corporations described in section 955(c)(2) (as so in effect) shall not be treated as investments in less developed countries..

(3)

Section 951(a)(3) of such Code (relating to the limitation on pro rata share of previously excluded subpart F income withdrawn from investment) is hereby repealed.

(4)

Section 964(b) of such Code is amended by striking , 955,.

(5)

The table of sections for subpart F of part III of subchapter N of chapter 1 of such Code is amended by striking the item relating to section 955.

(c)

Effective date

The amendments made by this section shall apply to taxable years of controlled foreign corporations ending on or after the date of the enactment of this Act, and to taxable years of United States shareholders in which or with which such taxable years of controlled foreign corporations end.

3.

One-time temporary dividends received deduction for previously untaxed foreign base company shipping income

(a)

In general

In the case of a corporation which is a United States shareholder and for which an election under this section is made for the taxable year, for purposes of the Internal Revenue Code of 1986, there shall be allowed as a deduction in computing taxable income under section 63 of such Code an amount equal to 85 percent of the cash distributions which are received during such taxable year by such shareholder from controlled foreign corporations to the extent that the distributions are attributable to income—

(1)

which was derived by the controlled foreign corporation in taxable years beginning before January 1, 2005, and

(2)

which would, without regard to the year earned, be described in section 954(f) of such Code (as in effect before the enactment of the American Jobs Creation Act of 2004).

(b)

Indirect dividends

A rule similar to the rule of section 965(a)(2) of the Internal Revenue Code of 1986 shall apply, determined by treating cash distributions which are so attributable as cash dividends.

(c)

Limitation

The amount of dividends taken into account under this section shall not exceed the amount permitted to be taken into account under paragraphs (1), (3) (determined by substituting December 31, 2008 for October 3, 2004), and (4) of section 965(b) of the Internal Revenue Code of 1986, determined as if such paragraphs applied to this section.

(d)

Taxpayer election and designation

For purposes of subsection (a), a taxpayer may, on its return for the taxable year to which this section applies—

(1)

elect to apply paragraph (3) of section 959(c) of the Internal Revenue Code of 1986 before paragraphs (1) and (2) thereof, and

(2)

designate the extent, if any, to which a cash distribution reduces a controlled foreign corporation’s earnings and profits attributable to—

(A)

foreign base company shipping income (determined under section 954(f) of the Internal Revenue Code of 1986 as in effect before the enactment of the American Jobs Creation Act of 2004), or

(B)

other earnings and profits.

(e)

Election

(1)

In general

The taxpayer may elect to apply this section to—

(A)

the taxpayer’s last taxable year which begins before the date of the enactment of this Act, or

(B)

the taxpayer’s first taxable year which begins during the 1-year period beginning on such date.

(2)

Timing of election and one-time election

Such election may be made for a taxable year—

(A)

only if made on or before the due date (including extensions) for filing the return of tax for such taxable year, and

(B)

only if no election has been made under this section or section 965 of the Internal Revenue Code of 1986 with respect to the same distribution for any other taxable year of the taxpayer.

(f)

Reduction in benefits for failure To maintain employment levels

(1)

In general

If, during the period consisting of the calendar month in which the taxpayer first receives a distribution described in subsection (a) and the succeeding 23 calendar months, the taxpayer does not maintain an average employment level at least equal to the taxpayer’s prior average employment, an additional amount equal to $25,000 multiplied by the number of employees by which the taxpayer's average employment level during such period falls below the prior average employment (but not exceeding the aggregate amount allowed as a deduction pursuant to subsection (a)) shall be taken into account as income by the taxpayer during the taxable year that includes the final day of such period.

(2)

Prior average employment

For purposes of this paragraph, the taxpayer’s prior average employment shall be the average number of full time equivalent employees of the taxpayer during the period consisting of the 24 calendar months immediately preceding the calendar month in which the taxpayer first receives a distribution described in subsection (a).

(3)

Aggregation rules

In determining the taxpayer’s average employment level and prior average employment, all domestic members of a controlled group (as defined in section 264(e)(5)(B) of the Internal Revenue Code of 1986) shall be treated as a single taxpayer.

(g)

Special rules

Rules similar to the rules of subsections (d) and (e) and paragraphs (3), (4), and (5) of subsection (c) of section 965 of the Internal Revenue Code of 1986 shall apply for purposes of this section.

(h)

Effective date

This section shall apply to taxable years ending on or after the date of the enactment of this Act.